Panel formed to look into surplus coal usage

NEW DELHI: Striving to bolster fuel supplies, the government today set up a three-member panel headed by Planning Commission Member B K Chaturvedi to look into issues related to utilisation of surplus coal from captive blocks.

"The panel constituted today will look into implications, legal issues and mechanisms with regard to usage of surplus coal from captive mines. The committee will submit its report within two weeks," the official added.

The Power Ministry has also suggested to the Coal Ministry incentivising surplus coal production from the captive mines in a bid to produce more coal in the backdrop of its shortage in the country.

Domestic coal demand was at 772.84 million tonnes (MT) against production of 557.60 MT in the last fiscal, according to official data.

The demand-supply gap of coal in the country is mainly met by imports from countries such as Indonesia, South Africa and Australia.

The deficit of about 204 MT had resulted in doubling of coal import bill at about USD 18 billion in 2012-13.

Besides, the government is also working on a policy on usage of surplus coal.

A draft policy on the usage of surplus coal from mines has been circulated to the Law, Power, Finance and Railway Ministries besides the DIPP (Department of Industrial Policy & Promotion) for consultation.

C Rangarajan, Chairman of Prime Minister's Economic Advisory Council, has also said that higher coal import was having a bearing on the current account deficit of the country which touched a record high of 6.7 per cent of the GDP in December quarter of 2012-13.